The relationship between resources and market coverage in small local internet retailing

Abstract

Purpose

The purpose of this paper is to investigate the association of e-channel resources with market coverage of small local retailers.

Design/methodology/approach

This survey-based study collects data from 147 North American florists who use web sites as e-channels. The data are analysed through a set of multi-nomial logistic regressions, and multiple analysis of covariance. Measurement validation is conducted before data analysis.

Findings

Considering two resources, e-IT competence and e-service agility − both critical for providing e-services − this study finds that e-service agility is significantly associated with market coverage. This paper also verifies that small local retailers who have wider market coverage than their competitors achieve higher performance from an e-channel. However, the retailers with wider market coverage do not have higher total retail sales.

Practical implications

Practitioners should carefully consider the imbalance between the cost of resource development to enable market extension and the eventual performance return. Market extension requires a high level of e-service agility, but the corresponding performance return may be inadequate. This finding advises the owners or managers of small local retailers to have a complete resource plan for the effective use of an e-channel.

Originality/value

This is the first survey-based study on the relationship between resources and market coverage for small internet retailing. The study uses cross-disciplinary perspectives to examine the practices of internet retailing and the resources required, based on insights on marketing, operations management, and management information systems.

Citation

Cho, Y.K. (2015), "The relationship between resources and market coverage in small local internet retailing", International Journal of Retail & Distribution Management, Vol. 43 No. 7, pp. 597-616. https://doi.org/10.1108/IJRDM-12-2013-0220